Rights violation: Bitcoin promoter indicted for money laundering

Prominent bitcoin entrepreneur Charlie Shrem has been indicted by a federal grand jury in New York on charges of funnelling cash to the illicit online marketplace Silk Road.

Shrem, known as one of the digital currency's most visible promoters, is accused of conspiring with a Florida man, Robert Faiella, to sell more than US$1 million in bitcoins to the users of Silk Road despite knowing that it would be spent on illegal uses like drug trafficking.

Both Shrem and Faiella face charges of money laundering, conspiracy and failing to file suspicious activity reports with government banking authorities, according to the indictment filed by Manhattan US Attorney Preet Bharara.

Shrem's lawyer, Marc Agnifilo, and Faiella's lawyer, David Braun, did not immediately respond to a request for comment on Monday.

Federal authorities shut down Silk Road last year, and prosecutors from Bharara's office have charged Ross William Ulbricht with operating the site under the name "Dread Pirate Roberts."